THE EMPLOYEES’ STATE INSURANCE

ACT, 19
[Act No. 34 of
1948]1

An Act to provide for certain

benefits to employees in
case of sickness, maternity and ‘ em
make
provision for
certain other matters in relation thereto.
WHEREAS it is expedient to
provide for certain
benefits to em­ployees in case of sickness, m
injury and
to make provision for certain other matters in relation thereto ;
It is hereby enacted as follows
: —

CHAPTER I
PRELIMINARY
1.  Short
title,
extent, commencement and application. — (1)  This
Act
may be call
Insurance Act, 1948.
(2)   It
extends
to 2[the whole of India 3[***]].
(3)   It
shall
come into force on such date or dates as the Central Government may, by
n
Gazette, appoint, and different dates may
be
appointed for different provisions of this Act and 1
different parts thereof].
(4)   It
shall
apply, in the first instance, to all factories (including factories
belonging
to
than
seasonal factories.
3
[Provided that
nothing contained in this sub-section shall apply to a factory or
establishm
the control of the Government whose employees are
otherwise
in receipt of benefits substan­tially
benefits
provided under this Act.].
(5)    The
appropriate Government may, in consultation with the Corporation and
Government is a State Government, with the approval of
the Central
Government], after giving 5
intention of so doing by notification in the Official
Gazette,
extend the provisions of this Act or
establishment,
or class of establishments, industrial, commercial, agricultural or
otherwise.
6
[Provided that
where the provisions of this Act have been brought into force in any
part of a
shall stand extended to any such
establishment or
class of establishments within that part if th
been
extended to similar establishment or class of establishments in another
part of
that State.]
1
[(6)  A
factory or an establishment to which this
Act applies shall continue to b
notwithstanding
that the
number of persons employed therein at any time falls below the limit

Act or the manufacturing process therein ceases to be

carried
on with the aid of power.]
2.  Definitions. — In this Act, unless there is
anything
repugnant in the subject or context, —
(1)   “
appropriate Government ” means, in respect of establish­ments under the
control
o
or 2[a railway administration]
or a major
port or a mine or oil-field, the Central Government,
3
[State] Government ;
 4
[(2)   
* * *]
(3)    “
confinement ” means labour resulting in the issue of a living child, or
labour

pregnancy resulting in the issue of a child

whether
alive or dead ;
(4)   “
contribution ” means the sum of money payable to the Corporation by the
principal
employee and includes any amount
payable by
or on behalf of the employee in accordance with t
5
[(5) * * *]
 3
[(ia)   a
widowed mother ;]
(ii)   if
wholly
dependent on the earnings of the insured person at the time of his
dea
son or daughter who has attained the age of 4[twenty-five]
and who is infirm ;
(iii)  
if wholly
or in part dependent on the earnings of the insured person at the time
o
(a)   a
parent other than a widowed mother,
(b)   a
minor illegitimate son, an unmarried illegitimate daughter or a
daughte
illegiti­mate if married and a minor or if
widowed and
a minor,
(c)   a
minor brother or an unmarried sister or a widowed sister if a minor,
(d)   a
widowed daughter-in-law,
(e)   a
minor child of a pre-deceased son,
(f)   
a
minor child of a pre-deceased daughter where no parent of the child is
ali
(g)   a
paternal grand-parent if no parent of the          
insured person is alive ;]
(7)    “
duly
appointed ” means appointed in accordance with the provisions of this

regulations made there-under ;

1
[(8)   “
employment injury ” means a personal injury
to an em­ployee caused by accident o
arising
out of
and in the course of his employment, being an insurable employment,
whether
occupational disease is contracted within or
outside the
territorial limits of India ;]
(9)    “
employee
” means any person employed for wages in or in connection with
establishment to which this Act applies and —
(i)    
who is
directly employed by the principal employer on any work of, or
incid
connected with the work of, the factory or
establishment,
whether such work is
the factory or
estab­lishment or
elsewhere ; or
(ii)   who
is
employed by or through an immediate 
employer on the premises of th
or
under the
supervision of the principal employer or his agent on work whic
work of the factory or establishment or which is
preliminary to the
work carried
purpose of the factory or
establishment
; or
 (iii)   whose services are temporarily lent or
let on
hire to the principal employer by
person whose
services are so lent or let on hire has entered into a contract of
se
person employed for wages on any work connected with the
administr
establishment or any part, department
or
branch thereof or with the purchase o
distribution
or sale of the products of, the factory or establishment ;
1
[or any person engaged as an
apprentice, not being an
apprentice engaged under the Apprentice
2
[and
includes such person engaged as apprentice whose training period is
extended to
any length
but does not
include] — ]
(a)   any
member of 3[the Indian] naval,
military or air forces ; or
4
[(b)   
any person so employed whose wages
(excluding remu­neration for over
wages as may be prescribed by the        
Central Government] :
Provided that an employee whose
wages (excluding
remuneration for overtime work) excee
prescribed by the Central Government] at any time after (and
not
before) the begin­ning of the
continue to be
an
employee until the end of that period ;]
(10)   
“
exempted employee ” means an employee who is not liable under this Act
to pay
th
;
 6
[(11)    
“ family
” means all or any of the following relatives of an insured person,
namely : —
  (i)   a spouse ;
(ii) i l ii d d hild d d h i d
 (iv)   a
child
who is infirm by reason of any physical or mental abnormality or injury
on the earnings of the insured person, so long as the
infirmity continues ;
1
[(v)   dependant
parents, whose income from all sources
does not exceed such incom
the Central
Government ;
(vi)   in
case
the insured person is unmarried and his or 
her parents are not alive,
wholly
dependant
upon the earnings of the insured person ;]]
 2
[(12)    
“
factory ” means any premises including the precincts thereof whereon
ten or
more
were employed on any day of the preceding
twelve
months, and in any part of which a manu
carried on or
is ordinarily so carried on, but does not include a mine subject to the
operation of th
1952), or a railway running
shed ;]
(13)     
“
immediate employer ” in relation to employees employed by or through
him,
undertaken the execution on the premises of a factory
or an
establishment to which this
supervision of the
principal employer or his agent, of the whole or any part of any work
whic
work of the factory or establishment of the
principal
employer or is preliminary to the work car
the
purpose of, any such factory or establishment and includes a person by
whom the
services
entered into a contract of service with
him are
temporarily lent or let on hire to the principal
contractor].
2
[(13-A)    
“ insurable employment ” means an
employment in a factory or establishment to whi
(14)   
“ insured
person ” means a person who is or was an em­ployee in respect of whom
payable under this Act and who is, by reason
thereof,
entitled to any of the benefits provided by t
   3
[(14A)       
“
managing agent ” means any person appointed or acting as the
representative
purpose of carrying on such other person’s trade
or
business, but does not include an individual m
employer
;
4
[(14AA)   
“
manufacturing process ” shall have the meaning as­signed to it in the
Factories
Act,
   (14-B)      “
mis-carriage ” means expulsion of the contents of a preg­nant uterus at
any
per
twenty-sixth week of pregnancy but does
not
include any miscarriage, the causing of which is pu
Penal Code (45 of 1860) ;]
(15)   
“
occupier ” of the factory shall have the meaning assigned to it in the
Factories Act,
     
1
[(15A)    
“ permanent partial disablement ” means
such disablement of a permanent natu
capacity
of an
employee in every employment which he was capable of undertaking at the
time o
the disablement :
Provided that every injury
specified in Part II of the
Second Sched­ule shall be deemed to r
disablement ;
  (15B)   “ permanent total disablement ” means
such
disablement of a permanent nature as
for all
work
which he was capable of performing at the time of the accident
resulting in
such disa
Provided that permanent total
disablement shall be
deemed to result from every injury
Second
Schedule
or from any combination of injuries specified in Part II thereof where
the
ag
loss of earning capacity, as specified in
the said
Part II against those injuries, amounts to one hun
   2
[(15C)    
“ power ” shall have the meaning assigned
to it in the Factories Act, 1948 (63 of 194
(16)   
“
prescribed ” means prescribed by rules made under this Act ;
(17)   
“
principal employer ” means —
(i)    
in a
factory, the owner or occupier of the factory 
and includes the managin
occupier, the
legal
representative of a deceased  owner or
occupier, and where
as the manager of the
factory under
3[the Factories Act, 1948]
(63 of 1948), the

  (ii)   in any establishment under the control

of any
depart­ment of any Government
  1
[(19A)       
“
seasonal factory ”, means a factory which is exclusively engaged in one
o
manufacturing processes, namely, cotton ginning,
cotton or
jute pressing, decortication of groun
coffee,
indigo,
lac, rubber, sugar (including gur) or tea or any manufacturing process
which is

with any of the aforesaid processes and

includes a
factory which is engaged for a period not exc
year —
(a)   
in any
process of blending, packing or repacking of tea or coffee ; or
(b)     
in such
other manufacturing process as the Central Government may, by
n
Gazette, specify ;]
(20)   
“
sickness ” means a condition which requires medical treat­ment and
attendance
a
from work on medical grounds ;
(21)     
“
temporary disablement ” means a condition resulting from an employment
injur
treatment and renders an employee, as a result
of such
injury temporarily incapable of 2[doin
doing prior to or at the time of the injury] ;
(22)     
“ wages ”
means all remuneration paid or payable in cash to an employee, if the
employment, express or implied, were fulfilled and
includes 1[any
payment to an employee in
authorised leave,
lock-out,
strike which is not illegal or layoff and] other additional
remuneration
not exceeding two months],
but
does not
include —
(a)   
any
contribution paid by the employer to any pension fund or provident
fund, or
(b)   
any
travelling allowance or the value of any travelling concession ;
(c)     
any sum
paid to the person employed to defray special expenses entailed on
employ­ment ; or
(d)   
any
gratuity payable on discharge ;
 3
[(23)    
“ wage
period ” in relation to an employee means the period in respect of
which wa
to him whether in terms of the contract of
employment,
express or implied or otherwise;]
4
[(24)    
all other words and expressions used but
not defined in  this Act and defined in
th
1947 (14 of 1947), shall have the meanings
respectively assigned to them in that Act.]
5
[2-A. 
Registration of factories and establishments. — Every factory or
establishment to which

registered within such time and in such

manner as may
be specified in the regulations made in thi
CHAPTER II
CORPORATION,
STANDING COMMITTEE AND MEDICAL BENEFIT C
3.  Establishment of Employees’ State Insurance
Corpora­tion. —
(1)  With effect from
Government may, by notification in the Official Gazette,
appoint in
this behalf, there sha
administration of the
scheme of
Employees’ State Insur­ance in accordance with the provisions o
be known as the Employees’ State Insurance Corporation.
(2)   The
Corporation shall be a body corporate by the name of Employees’ State
Insu
perpetual succession and a common seal and shall by
the said
name sue and be sued.
4.  Constitution of Corporation. — The Corporation shall
consist of the
following members
1
[(a)    a Chairman
to be 2[appointed] by the
Central Govern­ment ;
(b)   a
Vice-Chairman to be 2[appointed] by the Central
Government ;]
(c)   not
more than five persons to be 2[appointed]
by the Central Government 3[* * *] ;
(d)   one person each
representing each of the 1[2[States] in which this Act is in force]
State Government concerned ;
(e)   one person to be 3[appointed]
by the Central Govern­ment to represent the 4[Union te
 (h)   two persons
representing the medical profession to be 3[appointed] by the Central G
with
such organisations of medical practitioners as may be recognised for
the
Govern­-ment ; 6[***]
   7
[(i)   
three
members of Parliament of whom two shall be members of the House of th
one shall be a member of the Council of States (Rajya
Sabha)
elected respective
House of the People and the
members
of the Council of States ; and
 (j)  
the
Director-General of the Corporation, ex-officio.]
5.  Term
of
office of the members of the Corporation. — (1) Save as otherwise
expressly
term of office of members of the Corporation, other than 1[the members referred to in
clauses
section 4 and the ex-officio member,] shall
be four
years commencing from the date on whic
election is notified.
Provided that a
member of the Corporation shall notwithstanding the expiry of the said
peri
to hold office until the 2[appointment] or election of
his successor is notified.
(2)   The member of the Corporation referred
to in
clauses 3[(a), (b), (c), (d) and (e)]
of

during the pleasure of the Government 4[appointing] them.

6. Eligibility
for 5[re-appointment] or
re-election.
— An outgoing member of the C
Committee, or the Medical Benefit Council shall be
eligible for 5[re-appointment] or re-election
a
6
[7.  Authentication of
orders, decisions, etc.
— All orders and deci­sions of the Corporation
the
signature of the Director-General of the Corporation and all other
instruments
issued by
authenticated by the signature of
the
Director-General or such other officer of the Corporation
him.]
8.  Constitution
of Standing Committee.
— A Standing Committee of the Corporation
among its
members, consist­ing of —
(a)   a
Chairman 1[appointed] by the
Central
Government ;
(b)   three members of the Corporation, 2[1[appointed] by the Central Government] ;
  3[(bb)      three
members of the
Corporation representing such  three
State Governmen
Government may, by
notification in the
Official Ga­zette, specify from time to time
    (c)   4[eight] members elected by the Corporation as
follows : —
  (i)  
5[* * *]
  (ii)  
6[three] members from
among the members of the Corpo­ration
representing emp
 (iii)  
6[three] members from
among the members of the Corpo­ration
representing emp
(iv)   one member from
among the members of the Corpora­tion representing
the medi
 (v)  
one
member from among the members of the Corpora­tion elected by 1[Parliamen
2
[(d)   the
Director-General of
the Corporation, ex-officio.]
9.  Term
of
office of members of Standing Committee. — (1) Save as otherwise
expressly
term of office of a member of the Standing Committee, other
than a
member referred  to in cl
clause (bb)]
of section 8, shall
be two years from the date on which his election is notified :
Provided that a
member of the Standing Committee shall, notwith­standing the expiry of
the
continue to hold office until the election of his
successor is notified :
Provided further
that a member of the Standing Committee shall cease to hold office when

of the Corporation.
(2)   A
member of the Standing Committee referred to in           
clause (a) or 3[clause (b) o
shall hold
office
during the pleasure of the Central Government.
10 M di l B fi C il (1) Th C lG h ll i M di l B
 (d)    one member
each representing each of the 1[States (other than Union territorie
force to be 2[appointed] by the State
Government concerned ;
(e)    three
members representing employers to be 2[appointed] by the Central Govern
such organisations of employers as may be recognised for the purpose by
the
Ce
(f)     three
members representing employees to be 2[ap­pointed] by the Central Go
with
such organisations of employees as may be recognised for the purpose by

and
(g)    three
members, of whom not less than one
shall be a woman, representing the
2
[appointed] by the Central Government in
consul-tation with
such organisation
as may be recognised for
the
purpose by the Central Government.
(2)    Save as otherwise expressly provided in
this
Act, the term of office of a membe
Council,
other than
a member referred to in any of the clauses (a) to (d) of sub-section
(1), shall
b
on which his 3[appointment] is notified:
4
[Provided
that a member of the Medical Benefit Council shall, notwithstanding the
expiry
years continue to hold office until the 3[appointment] of his
successor is notified.]
(3)   A
member of the Medical Benefit Council referred to in clauses (b) and
(d) of
sub-se
during the pleasure of the Government
1[appointing] him.
11.  
Resignation of membership. — A member of the
Corporation, the
Standing Committ
Council may resign his office
by
notice in writing to the Central Government and his seat
acceptance of the resignation by that Government.
12.   
Cessation of membership. —   2[(1)]   
A member of the Corpora­tion, the Standing
C
Benefit Council shall cease to be a member of
that
body if he fails to attend three consecutive me
Provided that the
Corporation, the Standing Committee or the Medical Benefit Council,
subject to rules made by the Central Government in this
behalf,
restore him to membership.
 3
[(2)    
Where
in the opinion of the Central Government any person 4[appointed] or electe
employees or
the medical profession on (sic.) the Corporation, the Standing
Committee
or the M
the case may be, has ceased to
represent
such employers, employees or the medical profession
may, by notification in the Official Gazette, declare that with effect
from
such date as may be spe
shall cease to be a
member of
the Corporation,  the Standing Committee
or the Medical Benefit
be.]
5
[(3)    A person
referred to in clause (i) of
section 4 shall cease to be a member of the Corp
be a
Member of Parliament.]
13. Disqualification. — A
person shall be disqualified for being chosen as or for being a m
the Standing Committee or the Medical Benefit Council —
(a)   if he is declared
to be of unsound mind by a competent Court ; or
(b)   if he is an
undischarged insolvent ; or
(c)   if he has directly
or indirectly by himself or by his partner any
interest in subsis
work being done for, the
Corporation except as a medical practitioner or as a
Director) of a com-pany ; or
(d)    if before or after
the commencement of this Act, he has been
convicted of an
turpitude.
14.  Filling
of vacancies. — (1) 
Vacancies in the office of 1[appointed]
or elected membe
Standing Committee Medical
Benefit
Council shall be filled by  2[appointment] or
election, as the
(2)   A
member of the Corporation, the Standing Committee or the Medical
Benefit
Coun
to fill a
casual vacancy shall hold office only so long as the member in whose
place he
is 1[ap
have
been entitled to hold office if the vacancy had not occurred.
 (3)   1[The Director-General and the Financial Commissioner]
shall be
whole-time office
shall not undertake any work
unconnected with their office without the sanction of the Central
Corporation].
(4)   3[The Director-General or the Financial Commissioner]
shall
hold office for such p
years, as may be
specified in
the order appointing him. An outgoing 4[Director-General or Finan
be eligible
for re-appointment if he is otherwise qualified.
 (5)  5[The Director-General or the Financial Commissioner]
shall
receive such salary a
prescribed by the Central
Government.
(6)  
A
person shall be disqualified from being appointed as or for being 6[the Director
Commissioner]
if he is
subject to any of the disqualifications specified in section 13.
(7)  
The
Central Government may at any time remove 6[the Director-General or the Fina
office and shall do so if such removal is recommended by a resolution
of the
Corporation passed
for the purpose and
supported by
the votes of not less than two-third is of the total strength of the
17.  Staff. — (1)  The
Corporation may employ such other staff of officers and servants as
efficient transaction of its business provided that
the
sanction of the Central Government shall b
of any
post 1[the
maximum monthly salary of which 2[exceeds such salary as may be
p
Government]].
3
[(2) (a) 
The method of recruitment, salary and allowances, discipline and
other
con
members of the staff of the Corporation
shall be
such as may be specified in the regulations m
accordance with the rules and orders applicable to the officers and
employees
of the Cen
corresponding scales of pay :
Provided
that where the Corporation is of the opinion that it is necessary to
make a
depart
orders in respect of any of the
matters
aforesaid, it shall obtain the prior approval of the Central G
4
[Provided
further that this sub-section shall not apply to appointment of
consultants and
s
appointed on contract basis.]
(b)       
In
determining the corresponding scales of pay of the members of the st
Corporation shall have regard to the educational
qualifications, method of recruitment, duties an
officers and employees under the Central Government and in case of any
doubt,
the Corporatio
the Central Government whose
decision
thereon shall be final.]
(3)   
Every
appointment to 1[posts 2[(other than medical posts)] corresponding to 3[gro
under the Central
Government]
shall be made in consultation with the Union Public 
Service Com
Provided
that this
sub-section shall not apply to an officiating or temporary appointment
for
one year.
5
[Provided further that any such
officiating or
temporary appointment shall not conf
appointment and
the services rendered in that capacity shall not count towards
seniority or
mi
specified in the regulations for promotion
to next
higher grade.]
 6
[(4)     
If
any question arises whether a post corresponds to a 3[group A and group B
Government, the
question shall be referred to that Government whose decision thereon
shall be
fi
18.    Powers of the
Standing Committee. — (1)  Subject to the general
superintend
Corporation, the Standing Committee
shall
administer the affairs of the Corporation and may e
and perform any of the functions of the Corporation.
(2)   The Standing Committee shall submit for
the
consideration and decision of the Corp
matters as may
be specified in the regulations made in this behalf.
(3)    The Standing Committee may, in its
discretion, submit any other case or matte
Corporation.
 20.  Meetings
of
Corporation, Standing Committee and Medi­cal Benefit Council. — S
under this
Act, the Corporation, the Standing Committee and the Medical  Benefit Coun­cil sha
places and shall observe such rules of procedure in regard to
transaction of
business at their mee
in the regulations made
in this
behalf.
21. 
Supersession of the Corporation and Standing Committee. — (1) 
If in the opinion o
the Corporation or
the
Standing Committee persistently makes default in performing the duties

this Act or abuses  its

powers, that Govern­ment may, by notification in the official Gazette,
sup
in the case of the Standing Committee,
supersede
in consultation with the Corporation, the Standi
Provided
that therefore issuing a notification under this sub-section the
Central
Governme
opportunity to the Corpora­tion or
the
Standing Committee, as the case may be, to show cau
superseded and shall consider the explanations and objections, if any,
of the
Corporation or the S
case may be.
(2)    Upon the publication of a notification
under
sub-section (1) superseding the Co
Committee,
all the
members of the Corporation or the Standing Committee, as the case may
be
such publication, be deemed to have vacated
their
offices.
(3)    When
the Standing Committee has been superseded, a new Standing Commit
constituted in accordance with section 8.
(4)   When
the Corporation has been superseded, the Central Government may —
(a)      immediately 1[appoint] or cause to be 2[appointed] or elected new membe
accordance with section 4 and may constitute a new Standing Com­mittee
under
(b)      in its discretion,
appoint such agency, for such period as it may think fit, to
perform the functions of the Corporation and such agency
shall be
competent
and perform all the functions of
the
Corporation.
(5)  
The
Central Government shall cause it full report of any action taken under
this
sect
leading to such action to be laid before 3[Parliament] at the earliest opportunity and in any
case n
from the date of the notification super­seding
the
Corporation or the Standing Committee, as the c
22.  Duties
of Medical Benefit Council.
— The Medical Benefit Council shall —
(a)   advise 4[the Corporation and the Standing Committee] on
matters
relating to the
benefit, the certification
for
purposes of the grant of benefits and other connected m
(b)  
have
such powers and duties of investigation as may be prescribed in
relation to
c
practitioners in connection with medical
treatment
and attendance ; and
(c)  
perform
such other duties in connection with medical treatment and attendance
a
regulations.
23.     
Duties of 1[Director-General and the
Financial
Commis­sioner]. — The 1[Director-G
Commissioner]
shall exercise such powers and discharge such duties as may be
prescribed. The
other functions as may be specified in the
regula­tions.
24.   
Acts of
Corporation, etc., not invalid by reason of defect 
in constitution, etc. — No a
Standing
Committee or the Medical Benefit Council shall be deemed to be            
invalid by r
constitution of the Corporation, the Standing Committee or the
Medical
Benefit Council, or on th
thereof was not
entitled to
hold or continue        
in office by
reason of any disqualification or
2
[appointment] or
election, or by reason of such
act having been done during the period of any va
member of the Corporation, the Standing Committee or the Medical
Benefit
Council.
25.      
Regional
Board, Local Committees, Regional and Local Med­ical Benefit Counc
may appoint Regional Boards, Local
Committees and
Regional and Local Medical Benef
areas and in such
manner,
and delegate to them such powers and functions, as may be pro
regulations
administered by the Corporation for the purposes of this Act.
(2)  
The
Corporation may accept grants, donations and gifts from the Central or
any 1[St
Local authority, or any indi­vidual or body
whether
incorporated or not, for all or any of the purpo
 3
[(3)    
Subject
to the other provisions contained in this Act and to any rules or
regulation
moneys accruing or pay­able to the said Fund
shall be
paid into the Reserve Bank of India or s
approved by
the Central Government to the credit of an account styled the Account
of the
Em
Fund.]
(4)  
Such
account shall be operated on by such officers as may be authorised by
the
Stan
approval of the Corporation.
4
[27.   Grant by the Central Government. — * * * ]
28.  
Purposes for which the Fund may be expended. — Subject to the provisions of this
the
Central Government in that behalf, the Employees’ State Insurance Fund
shall be
expend
purposes, namely —
(i)     
payment
of benefits and provision of medical treatment and attendance to
insure
medical benefit is extended to their families,
the
provision of such medical benefit to their famili
provisions of this Act and defraying the charges and costs in
connection
therewith ;
(ii)      payment of fees and allowances to
members of
the Corpora­tion, the Standing Co
Benefit
Council, the
Regional Boards, Local Committees and Regional and Local Medical
Benef
 (iii)   
Payment of salaries, leave and joining time allowances,
travelling and compensatory
compassionate
al­lowances,
pensions, contributions to provident or other benefit fund of off
Corporation and meeting the expenditure in respect of
officers
and other services set up for the p
the
provisions of
this Act ;
 (iv)   
establishment and maintenance of hospitals, dispensaries and
other institutions and
and other ancillary
services
for the benefit of insured persons and, where the medical benefit is

their families ;
  (v)   
payment of contributions to any 1[State] Government 2[***] local authority or any p
towards the cost
of medical treatment and attendance provided to insured persons and,
whe
extended to their families, their families,
including the
cost of any building and equipment
agreement
entered
into by the Corporation ;
 (vi)   
defraying the cost (including all expenses) of auditing the
accounts of the Corporati
its assets and
liabilities
;
 (vii)   
defraying the cost (including all expenses) of the Emplo­yees’
Insurance Courts set up
 (viii)   
payment
of any sums under any contract entered into for the purposes of this
Act
Standing Committee or by any officer duly authorised
by the
Corporation or the Standing Com­m
  (ix)    
payment
of sums under any decree, order or award of and Court or Tribunal
against
its officers or servants for any act done in the
execution of his duty or under a com­promise or
other
legal proceeding or claim instituted or made against the Corporation ;
   (x)    
defraying
the cost and other charges of instituting or defend­ing any civil or
criminal

any action taken under this Act ;

  (xi)    
defraying
expenditure, within the limits prescribed, on mea­sures for the
improvemen
of insured persons and for the rehabilitation
and
re-employment of insured persons who have bee
  (xii)       
such
other purposes as may be authorised by the Corpo-ration with the
previou
Government.
1
[28-A. 
Administrative expenses. — The types of expenses which
may be termed as
admin
percentage of the income of the Corporation which may be spent for such expenses shall be suc
 (2)   Subject to such conditions as may be
prescribed by the Central Government, the Corp
time
invest any moneys which are not immediately required for expenses
properly
defra­yable
subject to as aforesaid, from time
to time
re-invest or realise such investments.
(3)
  The Corporation may, with the previous
sanction of the Central Government and
prescribed by
it, raise loans and take measures for discharging such loans.
(4)  
The
Corporation may constitute for the benefit of its staff or any class of
them,
such
fund as it may think fit.
30.  
Vesting of
the property in the Corporation. — All property acquired
before the establis
shall vest in the Corporation and all income derived
and
expenditure incurred in this behalf shall
of
the
Corporation.
1
[31. 
Expenditure
by Central Government to be treated as a loan. — * * * ]
32.
Budget estimates. —
The Corporation shall in each year frame a budget showing the
expenditure which it pro­poses to incur during the following
year and
shall submit a copy of the
the Central
Government
before such date as may be fixed by it in that behalf. The budget shall
co
in the opinion of the Central Government for the
discharge
of the liabilities incurred by the Corp
tenance of a working balance.
33.  
Accounts. — The Corporation shall maintain correct accounts of
its income and expend
such manner as may be prescribed by the Central Government.
2
[34.  Audit. — (1) 
The accounts of the Corporation shall be         
audited annually by the
General of India
and any expenditure incurred by him in connection with such audit shall
be
pay
the Comptroller and Auditor-General of India.
(2)   The
Comptroller and Auditor-General of India and any person appointed by
him in
of the accounts of the Corporation shall have
the
same rights and privileges and authority in con
the
Comptroller and Auditor-General has, in connection with the audit of
Government
accoun
have the right to demand the
production of
books, accounts, con­nected vouchers and other doc
inspect any of the offices of the Corporation.
(3)    The
accounts of the Corporation as certified by the Comp­troller and
Auditor-Gen
person appointed by him in this
behalf
together with the audit report thereon shall be forwarded
shall forward the same to the Central Government along with its
comments
on the report of the
General.]
35.  Annual
Report. —
The Corporation shall submit to the Central
Government an annu
activities.
36.  Budget,
audited accounts and the annual report
to be placed before 1[Parliament].
audited accounts of the
Corpo­ration, 2[together with the 3[report of the Comptro-ller and
Auditor
and the comments of the Corporation on such report] under
section 34]
and the budget a
Corporation shall be placed
before 1[Parliament]
4[***].
37.   
Valuation of assets and liabilities. — The Corporation shall, at
intervals of 5[three year
assets
and liabilities made by a valuer appointed with the approval of the
Central Government
:
Provided that it shall be open
to the
Central Government to direct a valuation to be made
may consider necessary.
CHAPTER
IV
CONTRIBUTIONS
38.  
All employees to be insured. — Subject to the provisions
of this Act,
all employees in f
to which this Act applies
shall be
insured in the manner provided by this Act.
39.   
Contributions. — (1) The contribution payable under this Act
in respect of an
contribution payable by the
em­ployer
(hereinafter referred to as the employer’s contribution) an
  2
[(3)   
The wage period in
relation to an employee shall be the unit in respect of which
payable under this Act.]
(4)    The
contributions payable in respect of each 3[wage period] shall ordinarily fall d
3
[wage period], and
where an employee is employed for part of
the 3[wage period], or is
emp
employers during the same 3[wage period] the contri-butions shall fall due on
such days
as
regulations.
   4
[(5) (a) 
If any contribution payable under this Act is not paid by the
principal
employer o
contribution has become due, he
shall be
liable to pay simple interest at the rate of twelve per c
higher rate as may be specified in the regulations till the date
of its
actual payment :
Provided
that
higher interest specified in the regulations shall not exceed the
lending rate

scheduled bank.
(b)  
Any interest recoverable under clause (a) may be recover­ed as
an arrear
of land rev
C to section 45-I.
Explanation. — In this sub-section “
scheduled bank ” means a bank
for the time bein
Schedule to the Reserve Bank
of India
Act, 1934 (2 of 1934).]
40.  Principal employer to
pay contributions in
the first instance. — (1)  The principal emp
of every employee, whether directly employed by him or by or through an
immediate emplo
contribution and the employee’s
contribution.
(2)   Notwithstanding anything contained in
any
other enactment but subject to the prov
regulations,
if any, made thereunder, the principal employer shall, in the case of
an
employee
(not being an exempted employee), be
entitled
to recover from the employee the employee’s
from his
wages and not otherwise :
Provided
that no such deduction shall be made from any wages other than such as
relate
t
period in respect of which the
contribution is
payable] or in excess of the sum representing the em
the period.
(3)   Notwithstanding any contract to the
contrary,
neither the principal employer nor the
be
entitled to
deduct the employer’s contribution from any wages payable to an
employee or
ot
him.
(4)    Any sum deducted by the principal
employer
from wages under this Act shall
entrusted to him
by the
employee for the purpose of paying the contribution in respect of which
i
(5)  
The
principal employer shall bear the expenses of remitting the
contributions to
the C
41.  
Recovery of
contributions from immediate employer. — (1)  A
principal employer, wh
respect of an employee
employed by or through an immediate employer, shall be entitled to
r
contribution so paid (that is to say the employer’s
contribution
as well as the employee’s cont
immediate
employer,
either by deduction from any amount payable to him by the principal
emplo
as a debt payable by the immediate employer.
1
[Explanation. —
* * *]
2
[(1-A)    The
immediate employer
shall maintain a register of employees employed by or th
the regulations and submit the same to the principal employer before
the
settlement of any am
section (1).]
(2)   In
the case referred to in sub-section (1), the immediate employer shall
be
entitled
contribution from the employee
employed by
or through him by deduction from wages and no
conditions specified in the proviso to sub-section (2) of section 40.
42. General provisions as to
payment of
contributions. —
(1)  No employee’s contribution
behalf of an employee whose average daily wages 3[during a wage period are below 4[such wage
and not otherwise].
4
[(3)    ***]
5
[(4)    ***]
6
[(5)    ***]
43. Method of payment of
contribution. — Subject to the provisions of this Act,
the
regulations for any matter relating or
incidental to
the payment and collection of contributions p
without
prejudice to the generality of the foregoing power such regulations may
provide
for —
(a)  
the
manner and time of payment of contributions ;
(b)  
the
payment of contributions by means of adhesive or other stamp affixed to
or
impre
otherwise and regulat­ing the manner,
times and
conditions in, at and under which, such sta
impressed ;
   1
[(bb)   
the
date by which evidence of contributions having been paid is to be
received by
the
(c)   the entry in or upon books or cards of
particular of contribu­tions paid and benefits di
insured persons to whom such books or cards relate ; and
(d)   the issue, sale custody, production,
inspection and delivery of books or cards and th
cards
which have been lost, destroyed or defaced.
  2[44.  Employers to furnish returns and maintain
registers, in certain cases. — (1)  Every
employer shall
submit to the Corporation or to such officer of the Corporation as it
may
direct
and containing such particulars
relating to
persons employed by him or to any factory or establis
he is the principal or immediate employer as may be specified in
regulations
made in this behalf.
(2)  
Where
in respect of any factory or establishment the Corpo­-ration has reason
to
be
have been submitted under sub-section (1)
but has
not been so submitted, the Corporation m
charge
of the
factory or establishment to furnish such partic­ulars as it may
consider
necessary fo
the Corpora­tion to decide
whether the
factory or establish-ment is a factory or establishment to w
(3)  
Every
principal and immediate employer shall maintain such registers or
records in
establishment as may be required by
regulations made
in this behalf.]
45.   
3[Social Security Officers],
their
functions and duties.
— (1)  The Corporation may
3
[Social Security Officers], as
it thinks
fit, for the purposes of this Act, within such local limits as
(2)  
Any
1[Social Security Officer] appointed by the Corporation
under sub-sec­tion
(1)
1
[Social Security
Officer]), or other official of the Corpo­ration authorised in this
behalf by
it
enquiring into the correctness of any of
the
particulars stated in any return referred to in sectio
ascertaining  whether any of the
provisions of this Act has been complied with —
(a)      require any principal or immediate
employer
to furnish to him such inform
necessary for the
purposes of this Act ; or
(b)      at any reasonable time enter any
office,
establishment, factory or other pr
principal or
immediate employer and require any person found in charge th
1
[Social Security Officer] or other official and allow him
to examine
such a
documents relating to the employment of
persons and
payment of wages o
information as he may
consider
necessary ; or
(c)    examine, with respect to any
matter relevant
to the purposes aforesaid, the pr
ployer, his
agent or
servant, or any person found in such factory, establishment
or any person whom the said 1[Social Security
Officer] or other official has reas
be or to
have
been an employee ;
2
[(d)     make
copies of, or take
extracts from, any register, account book or other doc
factory establishment office or other premises ;
carried out
by a Social Security Officer.]
3
[45-A.   
Determination of contributions in certain cases. — (1) Where in respect of a
fa
returns, particulars, registers or records are submitted, furnished
or
maintained in accor-danc
section 44 or any 4[Social Security Officer] or
other official
of the Corporation referred to in sub
is 5[prevented in any manner]
by the principal or
immediate employer or any other person, in e
discharging his duties under section 45, the Corporation may, on the
basis of
information
determine the amount of
contributions
payable in respect of the employees of that factory or estab
6
[Provided
that no such order shall be passed by the Corporation unless the
principal or
im
person in charge of the factory or
establishment has
been given a reasonable opportunity of being
1
[Provided further that no such
order shall be passed by
the Corporation in respect of the
from the
date on
which the contribution shall become payable.]
(2)    An order made by the Corporation under
sub-section (1) shall be sufficient p
Corporation under
section 75 or for recovery of the amount determined by such order as an
arr
section 45-B 2[or the recovery under section  
45-C to section 45-I].
3
[45-AA. 
Appellate Authority.
— If an
employer is
not satisfied with the order referred in se
an
appeal
to an appellate authority as may be provided by regulation, within
sixty days
of th
depositing twenty-five per cent. of the
contribution
so ordered or the contribution as per his own
higher,
with the Corporation :
Provided
that if the employer finally succeeds in the appeal, the Corporation
shall
refund suc
together with such interest as may
be
specified in the regulation.]
45-B.  Recovery
of contributions. — Any contribution payable under this Act
may be reco
revenue.]
4
[45-C. Issue of certificate
to the Recovery Officer. — (1) Where any amount is in arrear und
officer may issue, to the Recovery Officer, a
certificate under his signature specifying the a
Recovery Officer, on receipt of such certificate, shall proceed to
recover the
amount specified  t
establishment or, as the case may be, the principal or
immediate
employer by one or more of the
—
(a)      attachment
and sale of the movable or immovable property of the factory or
est
may be, the principal or immedi­ate employer ;
(b)     arrest
of the employer and his detention in prison ;
(c)         
appointing
a receiver for the management of the movable or immovable pr
establishment, or, as the case may be, the employer :
Provided
that the
attachment and sale of any property under this section shall first be
effecte
the factory or establishment and where such
attachment and sale is insufficient                   
for re
amount of arrears specified in the certificate, the Recovery
Officer may
take such proceedings a
employer for recovery
of the
whole or any part of such arrears.
(2)   
The
authorised officer may issue a certificate under sub-section (1)
notwithstan
recovery of the arrears by any
other mode
have been taken.
45-D.  Recovery officer to
whom certificate is to be
forwarded. — (1) The authorised

certificate referred to in section 45-C to the Recovery

Officer
within whose jurisdiction the emplo
(a)      carries on his business
or profession or within whose jurisdiction the princip
estab­lishment is situate ; or
(b)      resides or any movable
or immovable property of the factory or establish
immediate employer is situate.
(2) Where a factory or an establishment or the principal or immediate employer
 (b)    is of the opinion that,
for the purpose of expediting or securing the recovery o
the amount, it is necessary so to do,
he may send the certificate
or, where only a part of
the amount is to be recovered, a copy of the
manner prescribed by the Central Government and specifying the amount
to be
recovered to th
whose jurisdiction the factory
or
establishment or the principal or immediate employer has
resides, and thereupon that Recovery Officer shall also
proceed to
recover the amount due un
certificate or the
copy
thereof had been the certificate sent to him by the authorised officer.
45-E.
Validity of certificate and amendment thereof.
— (1)  When the authorised office
Recovery Officer under section 45-C, it shall not be
open to
the factory or establishment or th
employer to
dispute
before the Recovery Officer the cor­rectness of the amount, and no
objectio
other ground shall also be entertained by the
Recovery
Officer.
(2)    Notwithstanding the issue of a
certificate to
a Recovery Officer, the authorised o
withdraw
the
certificate or correct any clerical or arithmetical mistake in the
certificate
by sen
Recovery Officer.
(3)   The authorised officer shall intimate to
the
Recovery Officer any orders withdrawing
or
any
correc­tion made by him under sub-section (2) or any amendment made
under
sub-section
45-F. Stay of proceedings
under certificate and amendment or withdrawal thereof. — (1
certificate has been issued to the Recovery Officer for the recovery of
any
amount, the authoris
for the payment of the
amount,
and thereupon the Recovery Officer shall stay the proceedings u
so granted.
(2)   Where
a certificate for the recovery of amount has been issued, the
authorised
office
Officer informed of any amount paid or
time
granted for payment, subsequent to the issue of such
(3)   Where
the order giving rise to a demand of amount for which a certificate for
reco
been modified in appeal or other
proceedings under
this Act, and, as a consequence thereof, the
order is
the subject-matter of a further proceeding under this Act, the
authorised
officer shall stay
of the amount of the
certificate
as pertains to the said reduction for the period for which the a
remains pending.
(4)   Where
a certificate for the recovery of amount has been issued and
subsequently the

demand is reduced as a result of an appeal or

other
proceedings under this Act, the authorised of
which
was the subject-matter of such appeal or other proceeding has become
final and
conclusiv
withdraw it, as the case may be.
45-G. Other modes of recovery. — (1)  Notwithstanding the
issue
of a certificate to the Reco
45-C, the
Director-Gen­eral
or any other officer authorised by the Corporation may recover the
am
of the modes provided in this section.
(2)   If
any amount is due from any person to any factory or establishment or,
as the
cas
immediate employer who is in arrears, the
Director-General or any other officer authorised b
behalf may require such person to deduct from the said amount the
arrears due
from such facto
the case may be, the
principal or
immediate employer under this Act and such person sha
requisition and shall pay the sum so deducted to the credit of the
Corporation
:
Provided that
nothing in this sub-section shall apply to any part of the amount
exempt from
of a decree of a civil court under section 60
of the
Code of Civil Procedure, 1908 (5 of 1908).
(3)
(i)  The Director-General or any other
officer authorised by the Corporation in this behal
time to time, by notice in writing, require any person from whom money
is due
or may beco
establishment or, as the case may
be, the
principal or immediate employer or any person who h
hold money for or on account of the factory or establishment or as the
case may
be, the princip
to pay to the Director-General
either
forthwith upon the money becoming due or being held
specified in the notice (not being before the money becomes due or is
held) so
much of the mo
 (iii)     A
copy of the notice
shall be forwarded to the principal or immediate employer a
the Director-General or, as the case may be, the officer so
authorised
and in the case of a join
holders at their
last
addresses known to the Director-General or the officer so authorised.
(iv)     Save
as otherwise
provided in this sub-section, every person to whom a notice
section shall be bound to comply with such notice, and, in
particular,
where any such notice is is
or an insurer,
it shall
not be necessary for any pass book, deposit receipt, policy or any
other
doc
the purpose of any entry, endorsement or
the like
being made before payment is made notwith­sta
requirement to the contrary.
(v)     Any claim respecting any
property in
relation to which a notice under this su
arising after
the date of the notice shall be void as against any demand contained in
the
notice.
 (vi)    
Where a person to whom a notice under this sub-section is sent
objects to it by a
sum demanded or any part
thereof
is not due to the principal or immediate employer or that he
for or on account of the principal or immediate employer, then,
nothing
contained in this sub-s
require such person to
pay any
such sum or part thereof, as the case may be, but if it is discovere
false in any material particulars, such person shall be
personally liable to the Director-General o
to the
extent of his own liability to the principal or immediate employer on
the date
of the noti
principal or immediate
employer’s
liability for any sum due under this Act, whichever is less.
   (vii)    The
Director-General or the officer so authorised may, at any time or from
time
any notice issued under this sub-section or
extend the
time for making any payment in pursuance
  (viii)    The
Director-General or the officer so authorised shall grant a receipt for
any
a
with a notice issued under this sub-section
and the
person so paying shall be fully discharge
principal
or immediate employer to the extent of the amount so paid.
(ix)    Any person discharging any
liability to the
principal or immediate employer af
under
this
sub-section shall be personally liable to the Director-General or the
officer
so authoris
liability to the principal or
immediate
employer so discharged or to the extent of the principal
liability for any sum due under this Act, whichever is less.
(x)     If the person to whom a
notice under this
sub-section is sent fails to make payme
the
Director-
General or the officer so authorised, he shall be deemed to be a
principal or
immed
respect of the amount specified in the
notice
and further proceedings may be taken against him
amount as if it were an arrear due from him, in the manner provided in
sections
45-C to 45-F an
same effect as an attachment
of a
debt by the Recovery Officer in exercise of his powers under se
(4)   
The
Director-General or the officer authorised by the Corpo­ration in this
behalf
m
whose custody there is money belonging to the
principal or immediate employer for payment to
of such
money, or if it is more than the amount due, an amount sufficient to
discharge
the amount
(5)  
The
Director-General or any officer of the Corporation may, if so
authorised by th
general or special order, recover any arrears of
amount
due from a factory or an establishment or
the
principal or immediate employer by distraint and sale of its or his
movable
property in the
Third Schedule to the
Income-tax Act,
1961 (43 of 1961).
 45-H. 
Application of certain provisions of the Income-Tax Act. — The provisions of the Se
to
the
Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate
Proceedings)
Rules, 1
to time, shall apply with necessary
modifications as if the said provisions and the rules referred to
of contributions, interests or damages under this Act
instead of
to the income-tax :
Provided that any reference in
the said provisions and
the rules     to the “
assessee ” shall
b
to a factory or an establish­ment or the
principal
or immediate employer under this Act.
   45-I. Definitions. — For the purposes of sections 45-C to 45-H, —
(a)   “ authorised officer ” means the
Director-General, Insur­ance Commissioner, Joint
Regional Director or such other officer as may be authorised by the Central Gove
 BENEFITS
46.   
Benefits. — (1) Subject to the
provisions of this Act, the insured persons, 1[their d
hereinafter             
mentioned, as the case may be,]
shall be entitled to the following benefits, nam
(a)   
periodical
payments to any insured person in case of his sickness certified by
practi­tioner 2[or by any other person possessing such qualifica­tions
and
expe
may, by regulations, specify in this
behalf]
(hereinafter referred to as sickness b
3
[(b)     periodical
payments to
an insured woman in case of confinement or miscarriage
pregnancy, confinement, premature birth of child or miscarriage,
such wom
eligible for such payments by an authority
specified in
this behalf by the regula
to as maternity
benefit) ;]
(c)   
periodical
payments to an insured person suffering from disablement as a resul
sus­tained as an employee under this Act and
certified to be
eligible for such
specified in this behalf by
the
regulations (hereinafter referred to as disablement
(d)    periodical
payments to such dependants of an
insured person who dies as a resul
sustained
as an
employee under this Act, as are entitled to compensation u
referred to as dependants’ benefit) ; 1[***]
(e)      medical
treatment for and attendance on insured persons
(hereinafter referre
2
[and]
   3
[(f)     
payment
to the eldest surviving member of the family of an insured person w
expendi­ture on the funeral of the deceased insured person,
or,
where the insu
family or was not living with
his
family at the time of his death, to the perso
expenditure on the fu­neral of the deceased insured person (to be known
as 4[fun
Provided
that the
amount of such payment shall not exceed 5[such
amount as may be p
Government] and the claim
for such
payment shall be made within three months of the death
within such extended period as the Corporation or any officer or
authority
authorised by it in this
(2)  
The
Corporation may, at the request of the appropriate Government, and
subject to
s
laid down in the regula­tions, extend the
medical
benefits to the family of an insured person.
6
[47.   When person eligible for sickness
benefit. —
***]
1
[48.   When person deemed available for
sickness
benefit. — ***]
2
[49.  Sickness benefit. — The qualification of a person to claim sickness
benefit, the
conditi
benefit may be given, the rate and
period
thereof shall be such as may be prescribed by the Centr
  50.  
Maternity
Benefit. — The qualification of an
insured
woman to claim maternity benefi
which such
benefit
may be given, the rates and period thereof shall be such as may be
p
Government.]
3
[51.   Disablement benefit. — Subject to the provisions of this Act 
4[* * *] —
(a)  
a
person who sustains temporary disablement for not less than three days
(excluding
be entitled to periodical payment
5[at such rates and for such
periods and subject to
prescribed by the Central Government] ;
(b)  
a
person who sustains permanent disablement, whether total or partial,
shall be
enti
6
[at such rates and for such periods and subject to such
conditions as
may be
Govern­ment].
1
[* * *]
*51-A. Presumption as to accident arising in course of
employment. — For the purpose
arising in the course of
2[an employee’s]
employment shall
be presumed, in the absence of eviden
have
arisen
out of that employment.
 (a)    the accident would
have been deemed so to have arisen had the act
not been
aforesaid or without instructions
from his
employer, as the case may be ; and
(b)   the act is done
for the purpose of and in connection with the
employer’s trade or bus
*51-C.
Accidents happening while travelling in employer’s trans­port. — (1)    An acci
3
[employee] is, with
the express
or implied permission of his employer, travelling as a passenger
his place of work shall, notwithstanding that he is under no
obligation to his employer to travel b
to
arise out of
and in the course of his employment, if —
(a)   the accident would
have been deemed so to have arisen had he been
under such obli
(b)   at the time of the
accident, the vehicle —
 (i)      is
being operated by or on behalf of his employer or some other
person by
pursuance of arrangements made with his emplo- 
        yer
; and
(ii)    is not being operated in the
ordinary course
of public transport service.
(2)  
In
this section “ vehicle ” includes a vessel and an aircraft.
*51-D. Accidents happening while
meeting emergency. — An acci­dent
happening to an 1[e
premises at which he is
for the
time being employed for the purpose of his employer’s trade or bu
arise out of and in the course of his emp­loyment, if it
happens
while he is taking steps, on an actu
at those
premises,
to rescue, succour or protect persons who are, or are thought to be or
p
imperiled, or to avert or minimize serious damage to
property.]
2
[51-E.
Accidents
happening while commuting to the place of work and vice versa. — A
employee while commuting
from his
residence to the place of employment for duty or from the p
residence after performing duty, shall be deemed to have arisen
out of
and in the course of emp
the circumstances,
time and
place in which the accident occured and the employment is establish
3
[52.      Dependants’ benefit. — (1)  If an insured person
dies as a result of an employme
employee under
this
Act (whether or not he was in receipt of any periodical payment for
tempo­r
of the injury) dependants’ benefit shall be
payable 1[at such rates and for such
periods and sub
may be prescribed by the Central Government] to his dependants
specified
in 2[sub-clause (i),
clause (ii) of clause (6-A) of section 2.
(2)  
In
case the insured person dies without leaving behind him the dependants
as
aforesai
shall be paid to the other
dependants of the
deceased 3[at such rates and for such
periods and
sub
may be prescribed by the Central
Government.]
*52-A. 
Occupational disease.
— (1)  If an employee employed in any
establishment specif
Schedule contracts any
disease
specified therein as an occupational disease peculiar to 
that emp­l
employed
in the employment specified in Part B of that Schedule for a continuous
period
of 
contracts
any disease specified therein as an occupational disease peculiar to
that employment
or
in any employment specified in Part C of
that
Schedule for such continuous period as the Co
respect
of each such employment, contracts any disease specified therein as an
occupationa
employ­ment, the 
contracting of the disease shall, unless the
contrary is proved, be deemed to be
arising out of and in the course of employment.
(2) (i) 
Where the Central Government or a State Government, as the case
may be
employment to the employ­ment specified in
Schedule III
to the Workmen’s Compensation A
virtue of the
powers
vested in it under sub-section (3) of Sec. 3 of the said Act, the said
descripti
occupa­tional diseases specified
under that
sub-section as peculiar to that description of employ
form part of the Third Schedule.
  (ii)   Without prejudice to the provisions of
clause
(i), the Cor­poration after giving, by
Gazette,
not less than three months’ notice of its intention so to do, may, by a
like
notificatio
employment to the employments
specified in
the Third Schedule and shall specify in the case of
diseases which shall be deemed for the purposes of this section to be occupational diseases pecu
 (4)  
The
provisions of section 51-A shall not apply to the cases to which this
section
apply
1
[53.    Bar against receiving or recovery
of
compensation or dam­ages under any other law
his dependants shall not be entitled to receive or
recover, whether from the employer of the in
other
person, any compensation or damages under the Workmen’s Compensation
Act, 1923*
(8
for the time being in force or otherwise,
in
respect of an employment injury sustained by
employee
under this Act.]
1
[54. Determination of
question of disablement. — Any
question —
(a)  
whether
the relevant accident has resulted in permanent disablement ; or
(b)  
whether
the extent of loss of earning capacity can be assessed provisionally or
finall
(c)  
whether
the assessment of the proportion of the loss of earning capacity is
provision
(d)  
in
the case of provisional assessment, as to the period for which such
assessment
deter­mined by a medical board constituted in
accordance with the provisions of the
question
shall
hereafter be referred to as the “ disablement ques­tion ”.
54-A. 
References to medical boards and appeals to medical appeal
tribunals and
Employe
(1)  The case of any insured person for
permanent disablement benefit shall be referred by the
board for determination of the disablement question and if, on that or
any
subsequent refere
earning capacity of the
insured
person is provisionally assessed, it shall again be so referred to t
than the end of the period taken into account by the
provisional assessment.
(2)  
If
the insured person or the Corporation is not satisfied with the
decision of the
m
person or the Corpo­ration may appeal in the
prescribed manner and within the prescribed time to
 (i)   
the
medical appeal tribunal constituted in accordance with the provisions
of the
right of appeal in the prescribed manner and
within
the prescribed time to t
Court, or
(ii)    the
Employees’ Insurance Court
directly 1[:
Provided
that no appeal by an insured person shall lie under this sub-section if
such
commutation of disablement benefit on the basis
of the
decision of the medical board and receiv
such
benefit :
Provided
further that no appeal by the Corporation shall lie under this
sub-section if

commuted value of the disable­ment benefit on

the
basis of the decision of the medical board.].]
 2
[55.    Review of
decisions
by medical board or medical appeal tribunal. —
(1)  Any dec
medical board or a medical appeal tribunal may be reviewed at any time
by the
medical boa
tribunal, as the case may be, if it
is
satisfied by fresh evidence that the decision was given in
disclosure or misrepresentation by the employee or any other person
of a
material fact (whet
misrepresentation was or
was not
fraudu­lent).
(2)  
Any
assessment of the extent of the disablement resulting from the relevant
emplo
reviewed by a medical board if it is
satisfied
that since the making of the assessment there h
unforeseen aggravation of the result of the relevant injury :
Provided
that an
assessment shall not be reviewed under this sub-section unless the
medic
having regard to the period taken into account
by the
assessment and the probable duration of
substantial
injustice will be done by not reviewing it.
(3)  
Except
with the leave of a medical appeal tribunal, an assessment shall not be
revie
on any application made less than five
years, or
in the case of a provisional assessment, six mon
and
on such a review the period to be taken into account by any revised
assessment
shall not inc
date of the application.
(4)  
Subject
to the foregoing provisions of this section, a medical board may deal
with
 *55-A.
Review of dependants’ benefit. — (1)    Any decision award­ing dependants’
benef
reviewed at any time by the Corporation if it is
satisfied
by fresh evidence that the decision wa
non-disclosure
or misrepresentation by the claim­ant or any other person of a material
fact
(whe
misrepresentation was or was not
fraudulent) or
that the decision is no longer in accordance with
or
death or due to the marriage, re-marriage, or cessor or infirmity of,
or
attainment of the ag
claimant.
(2)   
Subject
to the provisions of this Act, the Corporation may, on such review as

dependants’ benefit be continued, increased,

reduced
or discontinued.]
56.  
Medical
Benefit. —
(1)  An insured person or (where such
medical
benefit is extended t
his family whose
condition
requires medical treatment and attendance shall be entitled to receive

(2)  
Such
medical benefit may be given either in the form of out-patient
treatment and
a
dispensary, clinic or other institution or
by
visits to the home of the insured per­son or treatment
or other institution.
(3)  
A
person shall be entitled to medical benefit during any 1[period] for which contribut
of him
or in which he is qualified to claim sickness benefit or maternity
benefit 2[or is in re
benefit as does not disentitle
him to medical benefit under the regulations] :
Provided
that a person in respect of whom contribution ceases to be payable
under this
Ac
benefit for such period and of such nature
as may be
provided under the regulations :
3
[Provided
further that an insured person who ceases to be in insurable employment

disablement shall con­tinue, subject to payment of

contribution and such other conditions as m
Central
Government, to receive medical benefit till the date on which he would
have
vacated the
the age of superannuation had he
not
sustained such permanent disable­ment :
4
[Provided
also that an insured person who has attained the age of superannuation,
a
pe
Voluntary Retirement Scheme or takes
premature
retirement, and his spouse shall be eligible to
subject to payment of contribution and such other conditions as may be
prescribed by the Central
Explanation. — In this section, “
superannuation ”, in
relation to an insured person, mea
person of
such age
as is fixed in the contract or conditions of service as the age on the
attainmen
the insurable employment or the age
of
sixty years where no such age is fixed and the person i
employment].
57.  Scale
of
medical benefit. — (1)
  An insured person and 
(where such medical benefit
his family shall be entitled to receive medical benefit
only of
such kind and on such scale as
1
[State] Government or by
the Corporation, and an
insured person or, where such medical benefi
his
family shall not have a right to claim any medical treatment except
such as is
provided by
clinic or other institution to
which he
or his family is allotted, or as may be provided by the regul
(2)  
Nothing
in this Act shall entitle an insured person and 
(where such medical benefit
his
family to
claim reimbursement from the Corporation of any expenses incurred in
respect
except as may be provided by the regulations.
58.   
Provision
of medical treatment by 1[State] Government. — (1)   
The 1[State] Gove
insured
persons and (where such benefit is extended to their families) their
families
in the 2[S
surgical and
obstetric treatment :
Provided that the 1[State]
Government may, with the approval of the Corporation, arrange
clinics of medical practitioners on such scale and subject
to such
terms and conditions as may be
(2)   Where
the incidence of sickness benefit payment to 
insured persons in any 2[State]

India average, the amount of such excess

shall be
shared between the Corporation and the 1[S
proportion as may be
fixed by
agreement between them :
Provided that the
Corporation may in any case waive the recovery of the whole or any part

1
 (4)    In
default of agreement between the Corporation and any 1[State] Government as
extent of the
medical treatment to be provided by the 1[State] Government and the proportion in
of the excess in the incidence of sickness benefit shall be
shared
between the Corporation and
determined by an
arbitrator (who shall be or shall have been a Judge of the 2[High Court 3[of a
Chief Justice of India and the award of the arbitrator shall be binding
on the
Corporation and the
4
[(5)    The State
Government may, in addition to the
Corporation under this Act, with the
Central
Government, establish such organisation (by whatever name called) to
provide
for certai
case of sickness, maternity and
employment
injury :
Provided
that any
reference to the State Government in the Act shall also include
reference
when such organisation is established by the
State
Government.
(6)   
The
organisation referred to in sub-section (5) shall have such structure
and
disc
powers and undertake such activities as
may be
prescribed.]
59.  Establishment
and maintenance of hospitals,
etc., in Corporation.
— (1)  The C
approval of the 1[State] Government
establish and
maintain in a 2[State] such hospitals,
dispensar
surgical services as it may think fit for the
benefit of
insured persons and (where such medical b
families)
their families.
(2)   The
Corporation may enter into agreement with any 3[***] local authority, private bo
to
the provision of medical treatment and attendance for insured persons
and
(where such med
their families) their
families, in
any area and sharing the cost thereof.
4
[(3)      The
Corporation may also
enter into agreement with any local authority, local
commissioning and running Employees’ State Insurance hospitals through
third
party participat
treatment and attendance to
insured
persons and where such medical benefit has been extended
families.]
5
[59-A. Provision of medical
benefit by the Corporation in lieu
of State Government. —
(1)
contained in any other provision of this
Act, the
Corporation may, in consultation with the Sta
the
responsibility for providing medical ben­efit to insured persons and
where such
medical be
families, to the families of such
insured
persons in the State subject to the condition that the Sta
the cost of such medical benefit in such proportion as may be
agreed upon
between the S
Corporation.
(2)   In
the event of the Corporation exercising its power under sub-section
(1), the
prov
benefit under this Act shall apply, so
far as
may be, as if a reference therein to the State Gover
the Corporation.]
1
[59-B. Medical and
para-medical education. — The Corporation may establish medical
coll
training institutes for its para-medical
staff
and other employees with a view to improve the qu
under the Employees’ State Insurance Scheme.]
General
60.  
Benefit
not assignable or attachable.
— (1)  The right to receive any payment
of any b
not be transferable or assignable.
(2)  
No
cash benefit payable under this Act shall be liable to attachment or
sale in
execut
of any Court.
61.   
Bar of
benefits under other enactments. — When a person is entitled
to any of the ben
he shall not be entitled to receive any similar
benefit
admissible under the provisions of any other
62.   
Persons
not to commute cash benefits.
— Save as may be provided in the regulations,
to
commute for a lump sum any 2[disablement
benefit] admissible under this Act.
3
[63.  
Persons
not entitled to receive benefits in certain cases. — Save as may be provided in
shall be entitled to sickness benefit or
disablement
benefit for temporary disablement on any d
i l h lid i f hi h h i d hi h h
 (c)   shall not leave
the area in which medical treatment provided by
this Act is being g
sion of the medical
officer,
medical attendant or such other authority as may be spe
regulations ; and
(d)   shall allow
himself to be examined by any duly ap­pointed medical
officer 1[* * *]
by
the Corporation in this behalf.
65. Benefits not to be
combined.
— (1) 
An insured person shall not be entitled to receive for
(a)    both
sickness benefit and maternity benefit
; or
(b)    both
sickness benefit and disablement
benefit for tempo­rary disablement.
(c)    both
maternity benefit and disablement
benefit for tem­porary disablement.
(2)   Where a person is entitled to more than
one
of the benefits mentioned in sub-section
choose
which benefit he shall receive.
2
[66.     Corporation’s
right
to recover damages from employer in certain cases. — * * *]
1
[67.     Corporation’s
right
to indemnified in certain cases. — * * *]
68.  
Corporation’s rights where a principal employer fails or
neglects to
pay any
contributio
employer fails or
neglects to pay any contribution which under this Act he is liable to
pay in
res
by reason thereof such person becomes
disentitled
to any benefit or entitled to a benefit on a low
may,
on being satisfied that the contribution should have been paid by the
principal
employer, pa
at the rate to which he would
have been
entitled if the failure or neglect had not occurred and
entitled to recover from the principal employer either —
 2
[(i)    
the
difference between the amount of benefit which is paid by the
Corporation
amount of the benefit which would have been
payable on
the basis of the contrib
paid by the employer
; or]
(ii)    twice the
amount of the contribution which
the employer failed or neglected to p
whichever
is greater.
(2)   The amount recoverable under this
section may
be recovered as if it were an arrear
section 45-C to section 45-I].
69.  Liability
of
owner or occupier of factories, etc., for excessive sickness benefit. — (1
considers that the incidence of sickness
among
insured persons is excessive by reasons of —
 (i)   
in
sanitary working conditions in a factory or establish­ment or the
neglect of
th
factory or establishment to observe any
health
regula­-tions enjoined on him by
or
(ii)      insanitary
conditions of any tenements or
lodgings occupied by insured pe
condi­tions
are
attributable to the neglect of the owner of the tenements or lodg
regulations enjoined on him by or under any
enactments,
the Corporation may send to
the owner or occupier of
the factory or establishment or to the
lodgings, as
the case may be, a claim for the payment of the amount of the extra
expenditure
in
as sickness benefit ; and if the claim is
not
settled by agreement, the Corporation may refer the m
support of its claim, to the appropriate Government.
(2)   If
the appropriate Government is of opinion that a prima facie
case for
inquiry is d
competent person or persons to
hold an
inquiry into the matter.
(3)   If
upon such inquiry it is proved to the satisfaction of the person or
persons
holding
in incidence of sickness among the
insured
persons is due to the default or neglect of the owner
or establishment or the owner of the tenements or lodgings, as
the case
may be, the said person
the amount of the
extra
expenditure incurred as sickness benefit, and the person or persons by
wh
of such amount shall be paid to the Corporation
 70.  
Repayment of benefit improperly received. — (1)  Where any person has
received any
this Act when he is not lawfully
entitled
thereto, he shall be liable to repay to the Corporation
the amount of such payment, or in the case of death his
representative shall be liable to repay th
the
deceased, if any, in his hands.
(2)  
The
value of any benefits received other than cash payments shall be
determined by
specified in the regulations made in this
behalf and
the decision of such authority shall be final.
(3)  
The
amount recoverable under this section may be recovered as if it were an
arrear

section 45-C to section 45-I].

71.    Benefit payable up
to and including day of death. — 2[If a person dies] during an
entitled to a cash benefit under this Act, the
amount of
such benefit up to and including the day o
any
person nominated by the deceased person in writing in such form as may
be
specified in the
no such nomination, to the
heir or
legal representative of the deceased person.
72.   Employer not to reduce
wages, etc.
— No employer by reason only of his liability for
under this Act shall, directly, or indirectly, reduce the wages of any
employee, or except as pro
discontinue or
reduce
benefits payable to him under the conditions of his service which ar
conferred by this Act.
73.   Employer not to
dismiss or punish employee during  period
of sickness, etc. — (1)  
N
discharge, or reduce or otherwise punish an employee during
the period
the employee is in rec
maternity benefit,
nor shall
he, except as provided under the regulations, dismiss, discharge or
r
an employee during the period he is in receipt of
disablement
benefit for temporary disablem
treatment for
sickness or
is absent from work as a result of illness duly certified in accordance
w
out of the pregnancy or confinement rendering
the
employee unfit for work.
(2)   
No
notice of dismissal or discharge or reduction given to an employee
during th
section (1) shall be valid or operative.
[CHAPTER V-A
1

SCHEME
FOR
OTHER BENEFICIARIES
73-A.               Definitions. — In this Chapter, —
(a)  
“
other beneficiaries ” means persons other than the person insured under
this
Act ;
(b)  
“
Scheme ” means any Scheme framed by the Central Government from time to
tim
the medical facility for other beneficiaries ;
(c)  
“
underutilised hospital ” means any hospital not fully utilised by the
persons
insure
(d)  
“
user charges ” means the amount which is to be charged from the other
beneficiari
may be notified by the
Corporation in
consultation with the Central Government fro
73-B. Power to frame Schemes. — Notwithstanding anything contained in this Act, the
Cen
notification in the Official Gazette, frame Scheme
for other
beneficiaries and the members of th
medical
facility
in any hospital established by the Corporation in any area which is
underuti
charges.
73-C. Collection of user charges. — The user charges collected from the other
beneficiaries
contribution and shall form part of the Employees’
State
Insurance Fund.
73-D. Scheme for other
beneficiaries. — The Scheme may
provide for all or any of the follow
(i)     the
other beneficiaries who may be covered
under this Scheme ;
 (ii)    
the
time and manner in which the medical facilities may be availed by the
other
ben
(iii)        the
form in which the other beneficiary
shall furnish particulars about himself
required as may
be specified by the Corporation ;
  73-F. Laying of Scheme framed under this Chapter. — Every Scheme framed under
this Cha
as may be after it is made, before each House of
Parliament while it is in session, for a total p
may
be comprised in one session or in two or more successive sessions, and
if,
before t
immediately following the session or
the
successive sessions aforesaid, both Houses agree in m
the Scheme or both Houses agree that the Scheme should not be made, the
Scheme
shall thereaft
modified form or to be of no
effect,
as the case may be ; so, however, that any such modificat
without prejudice to the validity of anything  previously
done under that Scheme.]
CHAPTER VI
ADJUDICATION OF DISPUTE
AND CLAIMS
74.   
Constitution of Employees’ Insurance Court. — (1)  The 1[State] Government sh
Official
Gazette, constitute an Employees’ Insurance Court for such local
area as may be specifie
(2)  
The
Court shall consist of such number of judges as the 1[State] Government may thin
(3)   
Any
person who is or has been a judicial officer or is a legal practitioner
of five
qualified to be a Judge of the Employees’ Insurance Court.
(4)  
The
1[State] Government
may appoint
the same Court for two or more local areas or t
same
local area.
(5)   
Where
more than one Court has been appointed for the same local area, the 1[St
general or special order
regulate
the distribution of business between them.
75. 
Matters to be decided by the Employees’ Insurance Court. — (1)  If any question or
dis
(a)     
whether
any person is an employee within the meaning of this Act or wheth
employee’s contribution, or
(b)   
the
rate of wages or average daily wages of an employee for the purposes of
this
(c)   
the
rate of contribution payable by a principal employer in respect of any
employ
(d)   
the
person who is or was the principal employer in respect of any employee,
or
(e)   
the
right of any person to any benefit and as to the amount and duration
thereof,

     
1
[(ee)       any
direction issued by the Corporation under section 55-A on a review of
an
benefits, or]
 2
[(f)    
*
* *]
(g)     
any
other matter which is in dispute between a principal employer and the
C
principal employer and an immediate employer,
or
between a person and the C
employee and a
principal or
immediate employer, in respect of any contributio
payable or recover­able under this Act, 3[or any other matter required to be or
the
Employees’ Insurance Court under this Act],
such
question or dispute 4[subject to the provisions of
sub-section
(2A)] shall be decided by t
Court in accordance
with the
provisions of this Act.
(2)   
5[Subject to the provisions
of sub-section (2A), the following claims]
shall be de
Insurance Court, namely : —
(a)    claim for the recovery of
contribution from
the principal employer ;
(b)    claim by a principal employer to
recover
contributions from any immediate emp
1
[(c)  *
* *]
(d)   
claim
against a principal employer under section 68 ;
(e)   
claim
under section 70 for the recovery of the value or amount of the
benefits
r
he is not lawfully entitled thereto ; and
the claim or
question before it in accordance with the decision of the medical board
or the
medi
case may be, except where an appeal has
been
filed before the Employees’ Insurance Court
section
54-A in which case the Employees’ Insurance Court may itself determine
all the
issues ar
 3
[(2-B)   
No matter which is in
dispute between a principal employer and the Corp
contribution or any other dues shall be raised by the principal
employer in the
Employees’ Insu
deposited with the Court fifty
per
cent. of the amount due from him as claimed by the Corporatio
Provided that the
Court may, for reasons to be recorded in writing, waive or reduce the
amo
this sub-section.]
(3)   
No
civil Court shall have jurisdiction to decide or deal with any question
or
d
adjudicate on any liability which by or
under this
Act is to be decided by 1[a medical board, or by
or by the Employees’ Insurance Court].
76.  
Institution of proceedings, etc.
—
(1) Subject to the provisions of this Act and any
Government, all proceedings before the
Employees’
Insurance Court shall be instituted in the Co
area
in which the insured person was working at the time the question or
dispute
arose.
(2)    If
the Court is satisfied that any matter arising out of any proceedings
pendin
conveniently dealt with by any other Employees’
Insurance
Court in the same 3[State], it may, su
the 2[State] Government in this
behalf, order such matter to be transferred to such other Co
forthwith transmit to such other Court the records connected
with
that matter.
(3)    The
2[State] Government
may transfer
any matter pending before any Employee
3
[State] to any such Court in another 3[State] with the consent of the 2[State] Government of that S
(4)    The
Court to which any matter is transferred under sub­-section (2) or
sub-secti
proceedings as if they had been originally
instituted in
it.
77.        Commencement
of proceedings. — (1) 
The proceeding before
an Employees’
commenced by application.
4
[(1-A)    Every such
application
shall be made within a period of three years from the date on
arose.
Explanation. — For the purpose of this
sub-section, —
(a)   
the
cause of action in respect of a claim for benefit shall not be deemed
to arise
or in the case of dependants’ bene­fit, the
dependants of the insured person claim
accordance
with the regu­lations made in that behalf within a period of twelv
became due or within such further period as the
Employees’ In­surance
Cou
which ap­pear to it to be reasonable ;
1
[(b)      the cause of
action in
respect of a claim by the Corpo-ration for recovering
interest and damages) from the principal employer shall be deemed to
have ar
such claim is made by the Corporation for the
first time :
Provided
that no
claim shall be made by the Corporation after five years of the period
to wh
(c)   
the
cause of action in respect of a claim by the principal employer for
recover
immedi­ate employer shall not be deemed to arise
till the
date by which the
having been paid is due to
be
received by the Corporation under the regula­tions
(2)   Every such application shall be in such
form
and shall contain such particulars and
such fee
if any,
as may be prescribed by rules made by the State Government in
consultation with
78.  
Powers of Employees’ Insurance Court. — (1)  The Employees’
Insurance Court shal
civil Court for the purposes of summoning and enforcing
the
attendance of witnesses, comp
production of
documents
and material ob­jects, administering oath and recording evidence and
su
to be a civil Court within the meaning of  1[section 195 and Chapter
XXVI of the
Code of Crim
1974)]
 (4)  
An
order of the Employees’ Insurance
Court shall be enforceable as if it were a
de
civil Court.
79.  
Appearance by legal practitioners, etc. — Any application, appearance or act requir
any person to or before an Employees’ Insurance Court (other than
appearance of
a person requi
examination as a witness) may
be made
or done by a legal practitioner or by an officer of
authorised in writing by such person or, with the permission of the
Court, by
any other person so
3
[80.   Benefit not admissible unless claimed in
time. — * * *]
81.  
Reference to High Court. — An
Employees’ Insurance Court
may submit any question
the High Court and
if does
so shall decide the question pending before it in accordance with such
82.   Appeal. — (1)  Save as expressly
provided in this section,
no appeal shall lie from a
Insurance Court.
(2)   
An
appeal shall lie to the High Court from an order of an Employees’ Insuran
substantial question of law.
(3)   The
period of limitation for an appeal under this section shall be sixty
days.
(4)   The
provisions of sections 5 and 12 of the 1[Limitation Act, 1963 (36 of 1963)] sh
this section.
83.    Stay of payment
pending appeal. — Where the
Corporation has presented an appe
Employees’ Insurance
Court,
that Court may, and if so directed by the High Court shall, pending
withhold the payment of any sum directed to be
paid by
the order appealed against.
CHAPTER
VII
PENALTIES
84.   Punishment for
false statement.— Whoever, for the
purpose of causing any increase in
this Act, or for the purpose of causing any payment or
benefit to
be made where no payment or
under this Act,
or for
the purpose of avoiding any payment to be made by himself under this

person to avoid any such payment, knowingly makes

or causes
to be made any false statement or
be
punishable
with imprisonment for a term which may extend to 1[six months] or with fine not
rupees, or with both.
3
[Provided
that where an insured person is convicted under this section, he shall
not be
en
under this Act for such period as may be
prescribed by the Central Government.]
85.   Punishment for
failure to pay contributions,
etc. — If any person —
(a)   fails
to pay any contribution which under this Act he is liable to pay, or
(b)   deducts
or attempts to deduct from the wages of an employee the whole or any
p
tribution, or
(c)   in
contravention of section 72 reduces the wages or any privileges or
benefits
admis
(d)    in
contravention of section 73 or any regulation dis­misses, discharges,
reduces

employee, or
(e)   fails
or refuses to submit any return required by the regulations or makes a
false
retu
(f)    obstructs
any Inspector or other official of the corporation in
the discharge of his du
(g)   is guilty of any
contravention of or non-compli­ance with any of
the requirements
the regulations in respect
of
which no special penalty is provided,
1
[he
shall be punishable —
      
2
[(i)  where
he commits an offence under clause (a), with imprisonment for a term
which
but —
(a)  
which
shall not be less than one year, in case of failure to pay the
employe
 (ii)    
where
he commits an offence under any of the clauses (b) to (g) (both
inclusive)
term which may extend to one year or with fine
which
may extend to four thousand rupees, or wi
3
[85-A. 
Enhanced punishment in certain cases after previous conviction. — Whoever, h
Court of an offence punishable under this Act, commits the same offence
shall,
for every suc
punishable with imprisonment for
a term
which may extend to 1[two years and with fine of
five th
Provided
that where
such subsequent offence is for failure by the employer to pay any
con
Act, he is liable to pay, he shall, for every such
subsequent
offence, be punishable with imprisonm
extend to
2[five
years but which shall not be less than two years
and shall also be liable to fin
rupees].
*85-B.  Power to recover damages. — (1) 
Where an employer fails to pay the amou
contribution or any other amount payable under this Act, the
Corporation may
recover 3[from
penalty such damages, not
exceeding the amount of arrears as may be specified in the regulations
Provided
that
before recovering such damages, the employer shall be given a
reasonable
opp
4
[Provided further that the
Corporation may reduce or
waive the damages recoverable unde
an
estab­lishment
which is a sick industrial company in respect of which a scheme for
rehabilitati
the Board for Industrial and
Financial
Reconstruction established under section 4 of the Sick Indu
Provisions) Act, 1985 (1 of 1986), subject to such terms and
conditions as may be specified in reg
(2)   
Any
damages recoverable under sub-section (1) may be recovered as an arrear
o
section 45-C to
section 45-I].
*85-C.   Power of Court
to make orders. — (1)  
Where an employer is
convicted of an offe
contribution payable
under this
Act, the Court may, in addition to awarding any punishment, by
him within a period specified in the order (which the
Court
may if it thinks fit and on application
to
time,
extend), to pay the amount of contribution in respect of which the
offence was
comm
return
relating to
such contributions].
(2)   Where
an order is made under sub-section (1), the employer shall not be
liable unde
continuation of the offence during the
period or
extended period, if any, allowed by the Court, bu
period or extended period, as the case may be, the order of the Court
has not
been fully complie
be deemed to have
committed a further
offence and shall be punishable with imprisonment in res
85 and shall also be liable to pay fine which may extend to 3[one thousand] rupees for every day a
the
order has not been complied with.]
86.  
Prosecutions. — (1)  No prosecution under this Act shall be
instituted except by or wit
the Insurance
Commis­sioner
4[or of such other officer
of the
Corporation as may be authori
5
[Director-General of the Corporation]].
1
[(2)    No Court
inferior to
that of a Metropolitan Magistrate or Judicial Magistrate of th
offence under this Act.]
(3)  
No Court
shall take cognizance of any offence under this Act, except on a
complaint
thereof 2[***].
3
[86-A.
Offences by
companies. — (1) 
If the person committing an offence under
this Act is
who at the time the offence was
committed
was in charge of, and was responsible to the comp
business of the company, as well as the company, shall be deemed to be
guilty
of the offence 
proceeded against and punished accordingly :
Provided that
nothing contained in this sub-section shall render any person liable to
any
pun
the offence was committed without his
knowledge
or that he exercised all due diligence to preve
offence.
Notwithstanding
anything contained in sub-section (1), where an offence under this Act
ha
consent or connivance of, or is attributable to, any
neglect
on the part of, any director or manager
of the company such director manager secretary or other officer shall be deemed to be guilty o
 (b)   a
firm means a partner in the firm.]
CHAPTER VIII
MISCELLANEOUS
87.   
Exemption of a factory or establishment or class of factories or
establishme
Government
may by notification in the Official Gazette and subject to such
conditions as

notification, exempt any factory or

establishment or
class of factories or establishments in an
operation
of this Act for a period not exceeding one year and may from time to
time by
like no
exemption for periods not exceeding
one year
at a time.
1
[Provided that such exemptions may be granted only if the
employees’  in such factories or
est
in receipt of benefits substantially similar or superior to
the
benefits provided under this Act :
Provided further
that an application for renewal shall be made three months before t
exemption period and a decision on the same shall be
taken by the
appropriate Government wit
of such application.]
88.  
Exemption of persons or class of persons. — The appropriate Government may, by n
Gazette and subject to such conditions as it may deem fit to impose,
exempt any
person or cla
any factory or establishment or
class of
factories or establishments to which this Act applies from
89.  
Corporation to make representation. — No exemption shall be granted or renewed u
88, unless a reasonable opportunity has been given to the
Corporation
to make any representatio
regard to the
proposal and
such representation has been considered by the appropriate Governmen
90.  
Exemption of factories or establishments belonging to Government
or any local auth
Government may, 1[after consultation with the Corporation],
by notification in the Official Ga
conditions
as may
be specified in the notification, exempt any factory or establishment
belo
authority, 3[from the operation of this Act] if the employees   in any such factory, or establishme
of        
benefits sub­stantially
similar or superior to the benefits provided under this Act.
91.   Exemption from one
or more provisions of the Act. — The
appropriate Government
the
Corporation, by notification in the Official Gazette, exempt any
employees or
class of em
establishment or class of
factories or
establishments from one or more of the provisions relatin
under this Act.
4
[91-A. Exemptions to be either prospective or
retrospective*. — Any notification
granting
ex
section 88, section 90 or section 91 may be
issued
so as to take effect 5[prospectively] on such
therein.]
6
[91-AA. Central Government to be appropriate
Government. — Notwithstanding
anything

respect of establishments located in the

States where
medical benefit is provided by the
Government
shall be
the appropriate Government.]
1
[91-B.  Misuse of benefits. — If the Central Government is satis­fied that the
benefits under
t
by insured persons in a factory or
establishment,
that Government may, by order, published
disentitle
such persons from such of the benefits as it thinks fit :
Provided that no
such order shall be passed unless a reason­able opportunity of being
heard
factory or establishment, insured persons and
the trade
unions registered under the Trade Union
having
members
in the factory or establishment.
  91-C. Writing
off of losses. — Subject to the
conditions as
may be prescribed by the Centr
Corporation is
of
opinion that the amount of contribution, interest and damages due to
the
Corpo
Corporation may sanction the writing
off
finally of the said amount.]
 
92. Power of Central Government to
give directions. — 2[(1)] The Central Government
3
[State] Government
as to the carrying into execution of this
Act in the 4[State].
5
[(2) The Central Government from time to time give such directions to the Corporation
the employer and the person to whom the factory or establishment is so
transferred shall jointly
pay the amount due
in
respect of any contribution or any other amount payable under this Act
in
to the date of such transfer :
Provided that the
liability of the transferee shall be limited to the value of the assets
obtained
94.  Contributions, etc., due
to Corporation to
have priority over other debts. —
Ther
included among the debts which, under section 49 of the
Presidency-towns Insolvency Act, 19
section
61 of the
Provincial Insolvency Act, 1920 (V of 1920), 2[or under any law relating to in
territories which, immediately before the 1st
November, 1956,
were comprised in a Part B State]]
the Indian Companies Act, 1956 (1
of 1956)],
are in the distribution of the property of the insolve
the assets of a company being wound up, to be paid in priority to
all other
debts, the amou
contribution or any other
amount
payable under this Act the liability wherefor accrued before
adjudication of the insolvent or the date if (sic.) the
winding
up, as the case may be.
5
[94-A.   Delegation of powers. — The Corporation and, subject to any regulations made
by the

the Standing Committee may direct that all

or any
of the powers and functions         
       w
performed by
the Corpo­ration or the            
Standing Committee, as the case may be, may, in re
subjects in such conditions, if any, as may be specified, be also
exercisable by any officer or au
Corporation.]
95.   Powers of Central
Government to make rules. — (1)   The Central
Government may
the Corporation
and] subject to the condition of previous publication, make
rules not
incon­sis
purpose of giving effect to the
provisions
thereof.
(2)   In
particular and without prejudice to the generality of the foregoing
power, such
ru
any of the following matters, namely : —
 2
[(a)   
the
limit of wages beyond which a person shall not be deemed to be an
employe
(ab)  the limit of maximum
monthly salary for the purpose of sub-section
(1) of sectio
 3
[(ac)]  
the manner in which 4[appointments] and elections of members of the
Corporati
tee and the Medical Benefit Council shall be made ;
 (b)  
the
quorum at meetings of the Corporation, the Standing Committee and the
Me
the minimum number of meetings of those bodies to
be held
in a year ;
 (c)   the
records to be kept of the transaction of the business by the
Corporation, the
the Medical Benefit Council ;
 (d)   the
powers and duties of the 1[Director-General and the Financial
Commissio
their service ;
 (e)   the
powers and duties of the Medical Benefit Council ;
   2
[(ea)    
the
types of expenses which may be termed as adminis­trative expenses the
pe
Corpo­ration which may be spent for such
expenses ;
(eb)   the races of
contributions and limits of
wages below which employees are not lia
(ec)    the manner
of calculation of the average
daily wage;
(ed)   the manner of
certifying the certificate to
recover amount by the Recovery Offic
(ee)    the amount
of funeral expenses ;
(ef)    the
qualifications, conditions, rates and
period of sick­ness benefit, maternity be
and
dependant’s benefit ;
 3
[(eff)   
the
income of dependant parents from all sources ; ]
(eg)    the
conditions for grant of medical benefits
for insured persons who cease to be
on account
of
permanent disablement ;
(eh)   the conditions
for grant of medical benefits
for persons who have attained the ag
 (g)    the
acquisition, holding and disposal of property by the Corporation ;
(h)    the raising
and repayment of loans ;
  (i)     
the
investment of the funds of the Corporation and of any provident or
oth
transfer or realization ;
 (j)   
the
basis on which the periodical valuation of the assets and liabilities
of the Cor
(k)    the bank or
banks in which the funds of the
Corporation may be deposited, the
in regard to
the
crediting of moneys accruing or payable to the Corporation and
sums may be paid out of the Corporation funds and the
officers in
whom such p
;
 (l)   
the
accounts to be maintained by the Corporation and the forms in which
such

the times at which such accounts shall be

audited ;
(m)    the
publication of the accounts of the
Corporation and the report of auditors, th
audit
report, the powers of auditors to disallow and surcharge items of
expend
sums so disal­lowed or surcharged ;
(n)      the
preparation of budget estimates and of supplemen­tary
estimates and th
estimates shall be sanctioned
and
published ;
(o)      the
establishment and maintenance of provident or other benefit
fund for of
Corporation ; 1[***]
2
[(oa)     the
period of
non-entitlement for cash benefit in case of conviction of an insured
(p)    any matter
which is required or allowed by this Act to be
prescribed by the Cent
3
[(2A)    The power
to make rules
conferred by this section shall include the power to give r
date not earlier than the date of commencement of this Act, to
the rules
or any of them but no re
given to any rule
so as to
prejudicially affect the interest of any person other than the
Corporatio
be applicable.]
(3)   Rules made under this section shall be
published in the Official Gazette and thereu
enacted
in this Act.
 4
[(4)    
Every
rule made under this section shall be laid, as soon as may be after it
is ma
Parliament while it is in session for a total
period of
thirty days which may be comprised in one s
successive sessions, and if, before the
expiry of
the session immediately following the session
aforesaid] both Houses agree in making any modification in the
rule or
both Houses agree that th
the rule shall
thereafter
have effect only in such modified form or be of no effect, as the case
may
such modification or annulment shall be without
prejudice
to the validity of anything previously
96.  
Power of State Government to make rules. — (1) The 2[State] Government may, 3[a
Corporation and]
subject to the
condition of previous publication, make rules not inconsistent wi
or any of the following matters, namely —
(a)     
the
constitution of Employees’ Insurance Courts, the qualifications of
person
Judges thereof, and the conditions of service of such
Judges ;
(b)    the procedure to be
followed in proceedings before such courts and the executio
Courts ;
(c)    the fee payable in respect
of applications made to the Employees’ Insurance Co
the proceedings in such Court, the form in which applica­tions should
be made

be specified in such applications ;

(d)    the establishment of
hospitals, dispensaries and other institutions, the allotment
families to any such hospital, dispensary or other
institution
;
 (e)   the scale
of medical benefit which shall be provided at any
hospital, clinic, dis
keeping of medical records and the furnishing of statistical returns ;
  (h)   any other
matter which is required or allowed by this Act to be
prescribed by the
(2)   Rules made under this section shall be
published in the official Gazette and thereu
enacted
in this Act.
   3
[(3)    
Every
rule made under this section shall be laid as soon as may be after it
is made,
State Legis­lature where it consists of two
Houses,
or, where such Legislature consists of one Hou
97.    Power of
Corporation to make regulations. —
(1) The Corporation may 4[***] su
previous
publi­cation, make
regulations, not inconsistent with this Act and the rules made
thereun
of the affairs of the Corpora­tion and for carrying
into
effect the provisions of this Act.
(2)  
In
particular and without prejudice to the generality of the foregoing
power, such
re
all or any of the following matters, namely
: —
 (i)     
the
time and place of meetings of the Corpora­tion, the Standing Committee
Council and the procedure to be followed at such
meetings ;
 1
[(ia)     
the
time within which and the manner in which a factory or establishment
shall
 (ii)   
the
matters which shall be referred by the Standing Committee to the
Corporatio
(iii)    the manner
in which any contribution payable
under this Act shall be assessed a
2
[(iii-a)    the rate
of interest
higher than twelve per cent. on delayed payment of contribut
     (iv)    reckoning
of wages for the purpose of fixing the contribution payable under this
 3
[(iv-a)    
the
register of employees to be maintained by the immediate employer ;
 (iv-b)   
the
entitlement of sickness benefit or disablement ben­efit for temporary
disablem
the person works or remains on leave or
on
holiday and in respect of which he
day on
which he
remains on strike ;]
(v)    the
certification of sickness and eligibility for any cash benefit ;
1
[(vi)      the method
of
determining whether an insured person is suffering from on
specified in the Third Schedule ;]
  (vii)  
the
assessing of the money value of any benefit which is not a cash benefit
;
 (viii)  
the
time within which 2[and the form and manner in which]
any claim for a ben
particulars to be specified
in such
claim ;
  (ix)  
the
circumstances in which an employee in receipt of disablement benefit
may
re­duced or otherwise punished ;
  (x)   
the
manner in which and the place and time at which any benefit shall be
paid ;
(xi)      the method
of calculating the amount of cash
benefit payable and the circum
extent to which
commutation of disable-          
ment
and dependant’s benefits
method of calculating
the
commutation value ;
(xii)    the notice
of pregnancy or of confinement
and no­tice and proof of sickness ;
3
  [(xii-a)    specifying
the
authority competent to give certificate of eligibility for maternity
    (xii-b)   the
manner of nomination by an insured woman for payment of maternity
be
child’s death ;
    

 (xii-c)     the production of proof in

support of claim
for maternity benefit or additional m
      (xiii)    the
conditions under which any benefit may be suspended ;
          (xiv)      the
conditions to be observed by a person when in receipt of any benefit
a
examination of such persons ;
 1
[(xv)    
***]
      (xvi)    the
appointment of medical practitioners for the pur­poses of this Act, the
dutie
the form of medical certificates ;
      (xvii-b)   the
terms and conditions for reduction or waiver of damages in relation to
a sick

       (xviii)   the

circumstances in which and the conditions subject to which any
regulation m
of such relaxation, and the authority by whom
such relax­ation
may be granted ;
  4
     [(xix)    
the
returns to be submitted and the registers or records to be maintained
by th
employ­ers, the forms of such returns,
registers or
records, and the times at whi
submitted and
the
particulars which such returns, registers and records should c
           

(xx)       
the duties and
powers of 1[Social 
Security Officers] and other officers and ser
   2[(xxa)    the
constitution of
the appellate authority and the interest on amount deposited
Corporation ; ]
    3[(xxi)    the method
of
recruitment, pay and allowances, dis­cipline, superannuation ben
of service of the officers and servants of the Corporation
other
than the   4
Financial Commissioner] ;]
      (xxii)   the
procedure to be followed in remitting contributions to the Corporation
; and
     (xxiii)   any
matter in respect of which regulations are required or permitted to be
made
5
[(2A)    The
condition of
previous publication shall not apply to any regulations of the natur
of sub-section (2).]
(3)   Regulations
made by the Corporation shall be pub­lished in the Gazette of India and
t
as if enacted in this Act.
   
1
[(4)     Every
regulation shall, as soon as may be, after it is made by the
Corporation, be
Government and that Govern­ment shall cause a
copy of
the same to be laid before each House o
session for
a total period of thirty days, which may be comprised in one session or
in two
or mor
if, before the expiry of the session
immediately following the session or the successive sessio
agree in making any modifica­tion in the regulation or both
Houses agree
that the regulation
regulation shall thereafter
have
effect only in such modified form or be of no effect, as the case
any such modification or annulment shall be without
prejudice to
the validity of anything pr
regulation.]
2
[98.  Corporation may
undertake
duties in [Part B States]. — * * *].
3
[99.  Medical care for the families of insured
persons. — At any time when its funds
so
pe
provide or contribute towards the cost of
medical
care for the families of insured persons.]
* Publisher’s Note : Existing
Sec. 99 before the
Amendment Act 29 of 1989, is give
*99.
          
 Enhancement of benefits. — At any time when its funds
so permit,
the Corporat
of any benefit admissible under
this Act
and the period for which such benefit may be given,
towards the cost of medical care for the families of insured persons.
4
[99-A.
  Power to remove difficulties. — (1)   If any
difficulty
arises in giving effect in the p
Central
Govern­ment
may, by order published in the Official Gazette, make such provisions
or
inconsistent with the provisions of this Act, as
appears
to it to be necessary or expedient for remo
(2)   Any
order made under this section shall have effect notwith­standing
anything
inco
rules or regulations made under this Act.]
1
[100.  Repeals and savings. — If, immediately before the day on which this Act comes
into
territories which,
im­mediately before the 1st November, 1956, were comprised in a Part B
State
part] any law corresponding
to this Act, that law shall, on such day, stand repealed :
Provided that the
repeal shall not affect —
(a)   the previous
operations of any such law, or
(b)   any penalty,
forfeiture or punishment incurred in respect of any
offence committed a
(c)   any investigation
or remedy in respect of any such pen­alty,
forfeiture or punishment
*THE
FIRST
SCHEDULE
(Courtesy
Madras
Book Agency, Villivakkam, Chennai)